Individuals are preferring to invest in floating rate funds due to lower chances of interest rates moving down and their ability to act as a hedge against rising rates. In October, floater funds received net inflows of Rs 5,050 crore, the second highest in debt-oriented mutual funds in the month after overnight funds which received net inflow of Rs 6,337 crore, as per data from Association of Mutual Funds in India. Investors also went for dynamic bond funds due to their ability to better navigate interest rate volatility.
Key to long-term investing: ‘Time in the market’ more important than ‘timing the market’
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